LIFE INSURANCE WITH LIVING BENEFITS
You might already have a decent understanding of life insurance benefits, like how it can protect your loved ones financially if you were to pass away.
But did you know that life insurance could benefit you while you’re still living? It is known as living benefits.
It is an option on your life insurance policy that enables a payout to the policy owner while still living.
WHAT ARE LIVING BENEFITS?
The contribution to your life insurance policy permits the policy owner to develop cash value that will sum up over your lifetime. In life insurance, it is termed as a living benefit as you are increasing the death benefit for your own use while still living the moment. When you pass away it is time for the death benefit to payout. But in the case of living benefits, you can use the money while still living.
Additional benefits and protections are offered by living benefit to you. When you have specific needs not covered by a standard life insurance policy a living benefit is then helpful. To personalize your policy according to your needs mainly rider is utilized.
LIVING BENEFITS CAN HELP PROVIDE ADDITIONAL LAYERS OF PROTECTION
Above all, life insurance with living benefits can help provide additional layers of protection – which is just one more way life insurance helps you protect what matters most to you.
ADVANTAGES OF LIFE INSURANCE WITH LIVING BENEFITS
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All of your other benefits remain the same
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Benefits can be used at any time
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The remaining benefits go to your beneficiaries if you don’t use them
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Add living benefits to a term policy or a lifetime policy
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Choose how to receive your benefits
UNDERSTANDING “CASH VALUE.”
The “cash value” in life insurance policies is the worth in your policy, and if you need it, it could be borrowed against or cashed out if you surrender the policy before death.
A life insurance policy’s cash value grows over time on a tax-deferred basis and can earn interest. You don’t have to pay taxes on increasing your cash value if it remains in your policy, but you might have to pay income tax if you withdraw the cash value.
Another thing to note is the consequences of withdrawing or surrendering your life policy. Sure, you’ll get the cash when you need it, but you’ll no longer have the death benefit, which is the amount your beneficiaries would receive upon your death.
INCREASE THE WORTH OF YOUR LIFE INSURANCE WITH LIVING BENEFITS
Many factors can increase the value of your life insurance policy. If you are interested in exploring life insurance with living benefits, or other options, we can answer any questions you might have. There’s no time like the present to plan for tomorrow.
